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brought the total of $ 100, managed to earn another 100, you already have 200. You fame and praise! Remove immediately starting $ 100, they are your blood, then continue your game seems to have benefit from hundreds again.
So your ruin mentally go to zero ...
Good luck!
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Actually it is true that nobody or trader can control what the market does, so it is important for all traders to make use of proper money management in their trade if he or she thinks to last and succeed in forex market, as a trader money management should be your first priority in this business of course we all know that forex is a risky business.
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I don't really understand what are you talking about, I think you say that we should invest $100, change it to $200 (100% profit), then we should withdraw all profit ($100), then continue to trade with $100 again.Originally Posted by solo2000
My question is, how if you lose those $100? Will you reinvest your $ 100 into your account? That is wrong money management.
Why you should withdraw all of your profit? I mean... what is the reason of you doing that? are you worried about losing again the profit that you already get?
If yes, then you are not a profitable trader, you still as a loser. Because if you are a profitable trader, you will not lose all of your balance whatever the amount of balance in your account.
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well money management make your account safer on any market. market some time goes unexpected which always washed account as you say your 200$ account is very less which can easily washed if you will not use money management and sl so always use Monet management for safe profit :)
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A newbie should create a plan before start trading. If can your success probability will grow. Mind it need a proper plan to get success on Forex. You can follow an expert, How are they doing.
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This is a good advice as it is going to give fest of mind to trade and also make him to be discipline with good money management.
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In fact, proper money managment is one of the most important elements of any trading strategy since it allows to reduce risk and increase profit potential when applied properly. First of all, money management rules shall describe the approach to placing stop loss orders. This issue is one of the most complicated, especially for newbie traders. Some of them even avoid to place stop orders at all, hoping that the price would movein favorable direction. At the same time, stop orders are necessary to protect funds on trading account. That is why each trader should know how to set stop-loss properly.
According to main principle, stop loss should be placed on the level where the previous scenario is on longer valid. In other words, trader should place stop loss on the level where there is no reason to hold the position longer. That is why stop loss level should be based on current situation and define using various technical analysis tools.
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For sure, any trader should follow money management rules if he wants to be profitable. The main goal of MM rules is to define the way the trader utilizes his trading capital. For instance, one of money management rules could prescribe to use as much as 1% of the whole buying power in one trade or to risk with only 1% respectively. At the same time, these rules may vary depending on particular situation. As usual, retail traders expose their accounts to larger risk rather than their professional colleagues. It happens because the trading process in large prop trading company is quite often supervised by risk manager that controls risks and prohibits traders to risk with more than they can afford to lose (based on their experience and past performance).
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